Actual Production History (APH)

Actual Production History (APH) policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease. The producer selects the amount of average yield to insure; from 50-75 percent (in some areas to 85 percent). The producer also selects the percent of the predicted price to insure; between 55 and 100 percent of the crop price established annually by RMA. If the harvested plus any appraised production is less than the yield insured, the producer is paid an indemnity based on the difference. Indemnities are calculated by multiplying this difference by the insured percentage of the price selected when crop insurance was purchased and by the insured share.

Yield Protection (YP)

Yield Protection policies insure producers in the same manner as APH polices, except a projected price is used to determine insurance coverage. The projected price is determined in accordance with the Commodity Exchange Price Provisions and is based on daily settlement prices for certain futures contracts. The producer selects the percent of the projected price he or she wants to insure, between 55 and 100 percent. 

Revenue Protection (RP)

Revenue Protection policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease, and revenue losses caused by a change in the harvest price from the projected price. The producer selects the amount of average yield he or she wishes to insure; from 50-75 percent (in some areas to 85 percent). The projected price and the harvest price are 100 percent of the amounts determined in accordance with the Commodity Exchange Price Provisions and are based on daily settlement prices for certain futures contracts. The amount of insurance protection is based on the greater of the projected price or the harvest price. If the harvested plus any appraised production multiplied by the harvest price is less than the amount of insurance protection, the producer is paid an indemnity based on the difference.

Revenue Protection With Harvest Price Exclusion

Revenue Protection With Harvest Price Exclusion policies insure producers in the same manner as Revenue Protection polices, except the amount of insurance protection is based on the projected price only (the amount of insurance protection is not increased if the harvest price is greater than the projected price). If the harvested plus any appraised production multiplied by harvest price is less than the amount of insurance protection, the producer is paid an indemnity based on the difference.

Production Hail

Production Hail Coverage/Personalized Production Hail Coverage The sales closing for Production Hail coverage is June 1st and is available on Field Corn, Soybeans and Wheat. Production Hail is designed to cover, on an MPCI unit basis in bushels, the portion of the crop not insured under your MPCI policy. This portion is calculated as the difference between the approved Actual Production History (APH) average yield for the Production Hail unit times the modification factor [1.00, 1.05, 1.10, 1.15 or 1.20] for the plan selected and the selected MPCI level of coverage yield guarantee, times the insured’s share, times the acres. This bushel amount, times MPCI price, times the Production Hail Price Election, equals the dollars of coverage. On all revenue products, the base price will be used to establish commodity price. Both the Personalized Production Hail Policy as well as the Production Hail Policy will have a 0%, 5% and 10% loss qualifier

The Wind Coverage Endorsement is available for use on the Production Hail Plan. The Wind coverage will be handled on a unit basis when written in conjunction with the Production Plan. If Wind Coverage is elected in connection with the Production Plan, the net percent of loss for the wind damage (after applying the deductible to the gross wind percent of loss) will be added to any qualifying net hail damage percent of loss. This final net percent of loss will then be carried forward to harvest and will be compared to the production loss for the final payment. We will pay according to the provisions and the payment will be based on the lesser of this final net percent of loss or the production loss based on the modified APH.

Companion Plan

DXS5 – 5% deductible disappearing at 25%. We will not cover any loss until the percentage of loss per acre exceeds 5%. The percentage then payable will be the percent in excess of 5%, multiplied by 1.25. Once the percentage of loss equals or exceeds 25%, this provision will no longer apply. 

DXS10 – 10% deductible disappearing at 50%. We will not cover any loss until the percentage of loss per acre exceeds 10%. The percentage then payable will be the percent in excess of 10%, multiplied by 1.25. Once the percentage of loss equals or exceeds 50%, this provision will no longer apply. 

DDA – 10% deductible disappearing at 25%. We will not cover any loss until the percentage of loss per acre exceeds 10%. The percentage then payable will be the percent in excess of 10%. Once the percent of loss exceeds 20%, an additional 2% will be paid for each percent in excess of 20%, up to a maximum of 25% at which percentage this provision will no longer apply. 

DDB – 20% deductible disappearing at 40%. We will not cover any loss until the percentage of loss per acre exceeds 20%. The percentage then payable will be the percent in excess of 20%. Once the percent of loss exceeds 30%, an additional 2% will be paid for each percent in excess of 30%, up to a maximum of 40% at which percentage this provision will no longer apply. 

DDC – 30% deductible disappearing at 55% We will not cover any loss until the percentage of loss per acre exceeds 30%. The percentage then payable will be the percent in excess of 30%. Once the percent of loss exceeds 40%, an additional 2% will be paid for each percent in excess of 40%, up to a maximum of 55% at which percentage this provision will no longer apply. 

XS20IP - Excess Over 20% Loss – Increasing Payment We will not cover any loss until the percent of loss per acre exceeds 20%; the percentage per acre then payable will be the percent in excess of 20%, multiplied by 1.25. The payable percentage may not exceed 100%. 

XS15IP – Excess Over 15% Loss – Increasing Payment We will not cover any loss until the percent of loss per acre exceeds 15%. The percentage per acre then payable will be the percent in excess of 15%. Once the percent of loss exceeds 70%, an additional 1½% will be paid for each percent in excess of 70%. The payable percentage may not exceed 100%. 

Companion 2.0, 3.0, 4.0 We do not cover loss until the percent of loss per acre exceeds 5%; the percentage per acre then payable will be the percent in excess of 5% multiplied by the increasing payment factor (2.0, 3.0, 4.0). The payable percentage may not exceed 100%. 

Companion 10/2 We will not cover any loss until the percent of loss per acre exceeds 10%; the percentage per acre then payable will be the percent in excess of 10%, multiplied by 2. The payable percentage may not exceed 100%. 

Companion 15/2.5 We will not cover any loss until the percent of loss per acre exceeds 15%; the percentage per acre then payable will be the percent in excess of 15%, multiplied by 2.5. The payable percentage may not exceed 100%.

Whole Farm Protection

WFRP provides a risk management safety net for all commodities on the farm under one insurance policy. This insurance plan is tailored for any farm with up to $8.5 million in insured revenue, including farms with specialty or organic commodities to include livestock, or those marketing to local, regional, farm-identity preserved, specialty or direct markets. The amount of revenue that can be covered with a WFRP insurance policy is the lower of the revenue expected on your current year’s farm plan or the five-year historic income adjusted for growth.

WFRP insurance provides coverage against the loss of revenue that you expect to earn, or will obtain from commodities you produce or purchase for resale during the insurance period under your one insurance policy.

Additional Enhancements

• Coverage levels from 50-85 percent to fit the needs of more farming and ranching operations.
• Replant coverage for annual crops.
• The ability to consider market readiness of costs as part of the insured revenue and expenses.
• A timeline for farming operations that operate as fiscal year filers.
• Streamlined underwriting procedures based on the forms used for WFRP.